AN ACT relating to government contracts.
Amend various sections of KRS Chapters 45A and 198A to define various terms, including "memorandum of agreement"; rename the Personal Service Contract Review Subcommittee to the Government Contract Review Committee; clarify that a governmental emergency does not include the failure of an agency to file a personal service contract or memorandum of agreement (MOA) with the committee in a timely manner; define "memorandum of agreement" for purposes of government contract review to mean only those agreements exceeding $50,000, program administration contracts, and interlocal agreements; specify the term personal service contract requires professional skill or professional judgment and include price contracts over $50,000; designate that agreements between a state agency and providers of direct Medicaid health care to individuals, except for HMO's and other entities primarily responsible for Medicaid managed health care, are exempt from review by the committee; designate that MOA's under $50,000 are exempt from review by the committee; designate that agreements between a state agency and a state college or university, an area development district, a community action agency, a mental health/mental retardation board, another state agency or a political subdivision are within the definition of personal service contract; designate that agreements between state colleges and employers of students in work study programs sponsored by the Kentucky Higher Education Assistance Authority are exempt from review by the committee; prohibit anyone from beginning working on an MOA until the committee is notified; require MOA's to be filed with the committee prior to the effective date and require MOA's to have a 30 day cancellation clause; require documentation of the need for the service, in the case of personal services the unavailability of state personnel or the nonfeasibility of utilizing state personnel to perform the service, in the case of MOA's appropriations of the agency, the amount of the agreement and any other information as the committee deems appropriate to be filed with all MOA's; require maintenance of an electronic or paper file or readily accessible records on all personal service contracts and MOA's, including date of receipt by the committee, and make available for public inspection; prohibit work or payment on any personal service contracts or MOA prior to review by the committee, unless a governmental emergency exists; clarify governmental emergency provisions to require the secretary of the Finance and Administration Cabinet or his designee to determine that the time involved in the review process would be detrimental to the state's ability to act or procure the service and the normal process will not accommodate the emergency, and require written documentation of such facts to the committee; require personal service contracts under $1,000 and MOA's under $50,000 to be filed with the committee not more than 30 days after their effective date for informational purposes only; exempt MOA's under $50,000 during a fiscal year from routine review by the committee; specify that if any personal service contract under $1,000 or MOA under $50,000 is amended to the extent that it exceeds stated amounts, then require committee approval; designate that a quorum is at least four (4) members present and the vote to be by majority; require monthly reports of committee activity to the Legislative Research Commission; allow the committee to establish policies and procedures and allow the use of electronic instrumentalities; remove the requirement that certain certifications, made upon negotiation of an architectural or engineering contract with the Transportation Cabinet, are to be filed with the committee; and make various technical corrections and changes.

SCS/FN - Retain original provisions except redefine memorandum of agreement (MOA), define multicontract, and redefine personal service contract; delete the provision designating MOA's under $50,000 as exempt from review by the committee; delete the provision prohibiting work on a MOA prior to filing with the committee; require documentation specified in a proof of necessity form or equivalent information, if filed electronically; delete requirement for a 30 day cancellation clause on MOA's; require additional documentation of the projected cost and source of funding, projected duration, detailed payment information, and reason for exchanging resources or responsibilities, in the case of MOA's; require price contracts under $50,000 to be filed with the committee not more than 30 days after the effective date for informational purposes; require committee review of MOA's and price contracts submitted more than 30 days after the effective date; allow committee review of MOA's and price contracts under $50,000; require committee review of price contracts under $50,000 that are amended to exceed $50,000 per fiscal year per governmental body; delete the provision limiting committee jurisdiction to examine whether the service could or should be performed by state personnel to only personal service contracts; delete the provision limiting committee jurisdiction to examine whether the duty or service is more appropriately performed by either agency to only MOA's; allow the committee to examine the appropriateness for exchanging resources or responsibilities; delete the requirement for monthly reports to LRC; and require annual reports from contracting bodies not later than December 1st of each year and allow the establishment of procedures which may include access to files related to personal service contracts and MOA's
SCA (1, R. Roeding) - Redefine the term memorandum of agreement to exclude the exchange of confidential personal information between agencies, and agreements between state universities or colleges and employers of work-study students; allow the committee to determine governmental emergency; and delete the provision for committee access to agency files.
SFA (2, R. Roeding) - Exempt from the definition of memorandum of agreement obligations or payments for reimbursing the cost of corrective action made pursuant to the Petroleum Storage Tank Fund; and allow for payment of services rendered if the memorandum of agreement or personal service contract is disapproved by the Government Contract Review Committee.
SFA (3, R. Roeding) - Retain provisions of original committee substitute, except exclude agreements involving child support, collection and enforcement from the definition of personal service contracts.
HCS/FN - Retain original provisions except include in the definition of memorandum of agreement, regional cooperative organizations formed for the purpose of providing professional educational services, privatization contracts, and the Kentucky Distinguished Educators Program and specify all other exemptions; specify that price contracts under the jurisdiction must relate to personal services and allow the exclusion of any other personal service contract that the committee deems inappropriate for consideration; exempt from public inspection those records as required by the Open Records Act; specify that payments are not authorized for contracts and agreements not approved by the committee; increase the aggregate amount under which the committee is obligated to review a personal service contract from $1,000 to $10,000; delete the requirement of LRC approval prior to the committee establishing certain routine policies and procedures; allow the secretary of the Finance and Administration Cabinet to cancel a personal service contract or memorandum of agreement disapproved by the committee and pay for services rendered; and require the secretary of the Finance and Administration Cabinet to act upon disapproval or objection to a personal service contract or memorandum of agreement within 10 days.

Feb 2-introduced in Senate
Feb 3-to Appropriations and Revenue (S)
Feb 19-reported favorably, 1st reading, to Calendar with Committee Substitute and Committee Amendment (1)
Feb 20-2nd reading, to Rules
Feb 25-floor amendment (2) filed to Committee Substitute; posted for passage in the Regular Orders of the Day for February 26, 1998
Feb 26-passed over and retained in the Orders of the Day; floor amendment (3) filed to Committee Substitute
Feb 27-3rd reading, passed 35-0 with Committee Substitute, Committee Amendment (1) and Floor Amendments (2) and (3)
Mar 2-received in House
Mar 3-to State Government (H)
Mar 13-posted in committee
Mar 24-reported favorably, 1st reading, to Calendar with Committee Substitute
Mar 25-2nd reading, to Rules; recommitted to Appropriations and Revenue (H)
Mar 26-posting waived
Mar 27-reported favorably, to Rules; posted for passage in the Regular Orders of the Day for March 30, 1998